Over the past decade, the Canadian dollar has been consistently rising against the United States dollar, particularly following economic or political crises. Many of you have certainly visited the states, and have witnessed first hand the vastly cheaper fuel, food and household products that are available there. This has contributed to the massive differential in prices across the borders, which finance minister Flaherty has been investigating recently.  

                However, the past few weeks have reversed much of this ongoing trend, due to the European troubles. Since investors are hesitant about the fragile state of the European economy due to the Greek debt crisis, the USD is viewed as a safe haven from the financial turmoil which threatens to envelop the world in another recession. This has driven down the Canadian dollar in relative value, reversing the trend and making our products more attractive. Despite these advantages, the volatility of the Canadian dollar make it difficult to accommodate, compared to steady changes. Combined with the state of the sluggish economy, the increase in Time Value of money is minimal, making our investments a choice between sluggish growth and unpredictability.

http://www.canadianbusiness.com/article/49211–canadian-dollar-lower-well-off-early-lows-as-commodity-prices-strengthen
http://www.montrealgazette.com/life/Flaherty+wants+probe+into+irritating+Canada+price+gaps/5365716/story.html
http://www.theglobeandmail.com/report-on-business/economy/currencies/swinging-loonie-keeping-exporters-off-balance/article2190993/